In February, the centre and state govt collected ₹1.33 trillion in GST revenue. According to the ministry, this represents the recovery of automobile sales.
Revenue stayed above ₹1.3 trillion in the second consecutive month of February.
Furthermore, before the pandemic disrupted economic activities, GST receipts crossed ₹1.39 trillion in April 2021.
Centre and state govt collect ₹1.33 trillion revenue in goods and services tax
January 2022 witnessed historic collects of ₹1.4 trillion.
The Union finance ministry pointed out that the GST revenue collection is 26% higher than Feb 2020 and 18% higher than Feb 2021.
Furthermore, revenue from imported goods is 38% higher than in Feb 2021.
Last month, the central government collected the central GST of ₹50,782 crores.
At the same time, ₹52,688 crores amounted to the state GST.
GST revenues and automobiles
In February, GST cess collection crossed ₹10,000 crores for the first time.
The significant GST cess collection came since the start of the federal indirect tax regime.
Additionally, sport utility vehicles attract at least 22% of automobiles GST, with 28% more GST.
The ministry said, “February, bing a 28-day month, normally witnesses lower revenues than that in January. This high growth during February 2022 should also be seen in the context of partial lockdowns, weekends and night curfews, and various restrictions that were put in place by several states because of the Omicron wave, which peaked around January 20.”
What is the future of FY22 with record revenue?
Partner at Deloitte India, M.S. Mani, said that collections are now stable as GST collection has exceeded ₹1.33 trillion.
The FY22 targets would be exceeded, despite the pandemic situation in January 2022.
Compared to 2021, a 21% jump in GST revenue receipts was in Maharashtra and Karnataka.
Furthermore, Punjab recorded an improvement of 14%.
He also said, “While on an overall basis, the collections are 18%higher than the same period last year, there is significant divergence among states with increases in the range of 2-23% among the large states.”
How did the centre and state collect record GST revenues?
The tax returns processing company, GSTN, showed that the daily average e-way bills were higher in February than in January.
The GSTN data showed the e-way bills for good shipment within and across states.
Various tax rule changes include phasing out of tax credits for purchases not reported by sellers.
Furthermore, the mild impact of Omicron has allowed GST revenue collections to remain light.
Additionally, various measures exist for fake invoices and book manipulation by the centre and state officials.
However, the President of PHDCCI, Pradeep Multani, says that simplification of tax laws would benefit the tax base and GST collections in the long run.
As GST revenue collections remain buoyant, tax authorities make strong efforts to enhance compliance.
Furthermore, tax collection would be low in March for sales in February unless tax compliance improves to make up for it.